A Regression Equation That Predicts the Price of Homes in Thousands

question 7

True/False

A regression equation that predicts the price of homes in thousands of dollars is = 24.6 + 0.055x₁ - 3.6x₂,where x₂ is a dummy variable that represents whether the house is on a busy street or not.Here x₂ = 1 means the house is on a busy street and x₂ = 0 means it is not.From this we can conclude that on average homes that are on busy streets are worth $3600 more than homes that are not on busy streets.

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Response

A natural, automatic, and innate reaction to a stimulus that occurs without prior learning or conditioning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any learning being involved.